Derwent London flags strong third quarter, points to record year

5th Nov 2026 07:47

(Sharecast News) - Derwent London flagged further progress with both leasing and developments on Thursday, as the real estate investment trust updated on third-quarter trading.

The FTSE 250 firm, which specialises in commercial properties in central London, signed £11.2m of new rent since the start of the second half, bringing the year-to-date total to £39.8m. Open market lettings were 6.1% above estimated rental value.

Key lettings during the period included One Oliver's Yard in EC1 and 1-2 Stephen Street in W1.

Its developments, meanwhile, include four major West End projects totalling 527,300 square feet, including 50 Baker Street - where demolition and enabling works were making "good progress" - and Victorian warehouse Greencoat & Gordon in SW1.

New chief executive Jonathan Murphy, who took up the reins in September, said: "Since joining I have been encouraged to see our teams achieve higher rents and occupancy rates across our quality portfolio.

"This strong leasing activity has further reduced vacancy, and with additional lettings under offer, 2026 is on track to be one of our best years on record.

"While the near-term outlook for property yields remains uncertain, this reinforces the importance of focusing on the factors within our control. We are making good progress on capital recycling, with £290m of disposals completed or exchange year to date, alongside our completion of our £50m share buyback in September."

As at 1545 GMT, the shares were largely unchanged at 1,941p, having pared back earlier gains.

Shore Capital, which has a 'buy' rating on the stock, called the third-quarter performance "encouraging". It continued: "London remains the HQ office capital of Europe, attracting significantly more investment than any other European city and driving demand for offices against the current shortage of new space.

"We believe that Derwent looks to be one of the best-placed listed operators to benefit from the ongoing recovery in West End offices, and we like its award-winning, design-led ethos and development pipeline."

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